This study examines the operation of the board of directors in public enterprises, and discusses directions towards improvement.As the Framework Law for Managing Public Enterprises was introduced to the public enterprise sector in April of 1984, the relationship between the government and public enterprise has changed, as well as the organization management patterns in public enterprise. The main framework of the new Framework Law for Managing Public Enterprises was the introduction of the autonomous responsibility management system, which guarantees autonomy of management and strengthens responsibility for the performance of the management. Specifically, the stipulation of internal appointment for executive board members, in order to reduce problems caused by the appointment of outsiders as executive board members by executive order, was acknowledged as the most innovative aspect of the framework.The management center of public enterprise was changed from the board of directors (or director), to the president (or executive board members) by observing the principle of internal appointment for executive board members without exception, reducing the functions of the directors appointed by outsiders, changing the status of all directors including the chief director to non-permanent positions, and drastically reducing benefits for directors. In relation to “the new operation of the board of directors in public enterprises” in order to realize the autonomous responsibility management system for the public enterprises, the abolition or improvement of ‘the chief director system of the public enterprises’ is being discussed.Problems of appointment of former high-ranking officials or former generals as chief directors, excessive benefits for the chief director, imbalances between ex-officio directors of the government and civilian directors, and insufficient use of expertise of civilian directors can be improved through improved management of this system.The operation of the board of directors in public enterprises should be improved on the basis of the enhancement of autonomous responsibility management. First, improvement of the chief director system can be made by appointing experts in public enterprise, as has been announced by the government. Second, improvement can be made so that the board of directors cannot be a burden to executives. Third, it is necessary to reexamine the role of ex-officio directors of the government.